Marketing Analysis of Mengniu Dairy Co.
Company Philosophy/ Mission Statement
The company strives for creating natural dairy products, especially milk, trying to meet its aim “For a Better Life”. Mengniu believes that healthy developments is primary social obligation to an enterprise and as an excellent corporate, it should also actively undertake responsibilities for the nature and the society.
Background
In 1999, Inner Mongolia Mengniu Dairy (Group) Co., Ltd. founded by Mr Niu Gensheng, a former employee of Yili, another Inner Mongolian dairy giant which is now Mengniu's largest competitor. It headquarters in the core of China Dairy Capital Shengle Economic Zone in Helingeer County of Huhhot, Inner Mongolia. Mengniu Dairy (Group) Co., Ltd. (Mengniu Dairy Group) has a total asset of RMB 8 billion and 30,000 employees, and the production capacity of dairy products reaches 5 million metric tons per year.
So far Mengniu Dairy Group has established over 20 production bases including Helin base in 15 provinces of China and owned 5 major series of products which are liquid milk, yogurt, ice cream, dry milk and cheese in which are incorporated over 200 categories. Relying on the supreme quality of its products, Mengniu’s products cover all Chinese market and are exported to overseas market such as America, Canada, Mongolia Republic, Hong Kong, Macao and other Southeast Asian countries.
Nature of Market
The group mainly engages in producing and distributing ultra-high-temperature sterilized milk (UHT milk), milk beverage, yogurt, ice-cream products and milk-powder (see Fig.1). Largest segment is the UHT Milk, producing 60% of total sales in 2010. Compared with sales in 2009, Mengniu got 17.7% more profit. However, 2008 Chinese milk scandal still has effect on the company, although they recalled tainted milk powders and apologized to the public.
Figure 1
Competition
According to the Figure 2, we see that main competition for Mengniu is the Yili, another Inner Mongolian dairy giant, and Mengniu
The company strives for creating natural dairy products, especially milk, trying to meet its aim “For a Better Life”. Mengniu believes that healthy developments is primary social obligation to an enterprise and as an excellent corporate, it should also actively undertake responsibilities for the nature and the society.
Background
In 1999, Inner Mongolia Mengniu Dairy (Group) Co., Ltd. founded by Mr Niu Gensheng, a former employee of Yili, another Inner Mongolian dairy giant which is now Mengniu's largest competitor. It headquarters in the core of China Dairy Capital Shengle Economic Zone in Helingeer County of Huhhot, Inner Mongolia. Mengniu Dairy (Group) Co., Ltd. (Mengniu Dairy Group) has a total asset of RMB 8 billion and 30,000 employees, and the production capacity of dairy products reaches 5 million metric tons per year.
So far Mengniu Dairy Group has established over 20 production bases including Helin base in 15 provinces of China and owned 5 major series of products which are liquid milk, yogurt, ice cream, dry milk and cheese in which are incorporated over 200 categories. Relying on the supreme quality of its products, Mengniu’s products cover all Chinese market and are exported to overseas market such as America, Canada, Mongolia Republic, Hong Kong, Macao and other Southeast Asian countries.
Nature of Market
The group mainly engages in producing and distributing ultra-high-temperature sterilized milk (UHT milk), milk beverage, yogurt, ice-cream products and milk-powder (see Fig.1). Largest segment is the UHT Milk, producing 60% of total sales in 2010. Compared with sales in 2009, Mengniu got 17.7% more profit. However, 2008 Chinese milk scandal still has effect on the company, although they recalled tainted milk powders and apologized to the public.
Figure 1
Competition
According to the Figure 2, we see that main competition for Mengniu is the Yili, another Inner Mongolian dairy giant, and Mengniu
References: 1. “2009 Annual Report.” Mengniu Dairy (Group) Co., Ltd. http://www.mengniu.com.cn/images/pdf/2010042922470100986179_tc.pdf 2. “2010 Annual Report.” Mengniu Dairy (Group) Co., Ltd. http://www.mengniu.com.cn/images/pdf/20100922164701001069506_tc.pdf 3. William D.Perreault, J.,P.Cannon, J., McCarthy,E. Basic Marketing 18e. McGraw-Hill Higher Education, 2010. 4. “Global Dairy Top 10”, China Business, http://www.askci.com/data/viewdata10173.html